FURTHER controversy has blown up around Swissair's alliance talks with Sabena, following the disclosure that the Swiss carrier is planning to make a revised offer which will include a call for "substantial" Belgian Government help in recapitalising its national carrier.

"Swissair will formulate a new offer later this month, but has already told me it will demand substantial financial help from the Belgian Government," transport minister Elio Di Rupo told the Belgian parliament on 1 February.

Di Rupo says that the rethink follows the collapse of Sabena's plans to relocate 450 of its pilots to neighbouring Luxembourg, which has significantly lower employment costs than Belgium. The plan collapsed when Luxair turned down the offer to take part.

Sabena President Pierre Godfroid, has since been scouting for other flags of convenience, but the concept has roused stiff opposition from within the Belgian Government. The Government has also made it clear that it will not consider further state aid for the carrier after saving it from bankruptcy in 1991.

Swissair says, that both sides are still "deeply convinced", that the alliance should go ahead, but concedes that it is revising its offer in the light of the pilot-pool failure. The Swiss carrier denies that it will request direct state aid, but is understood to be looking for other forms of support from the Belgian Government.

Source: Flight International